As of August 20th, 2020, the total newly registered capital, adjusted capital and capital contribution or share purchase by foreign investors reached 19.54 billion USD, equaling 86.3% compared to the same period last year. Capital generated by FDI projects was estimated at 11.35 billion USD, or 94.9% over the same period last year.
Accumulated as of August 20th, 2020, the whole country had 32,539 valid projects with total registered capital of 381.2 billion USD. The accumulated realized capital of foreign direct investment projects was estimated at 223.1 billion USD, equaling 58.5% total valid registered investment capital.
Details are as follows:
I. FDI INFLOWS
1. FDI attraction in the first 8 months of 2020
1.1. FDI performance:
Realized capital:
As of August 20th, 2020, foreign direct investment projects were estimated to disburse 11.45 billion, or 95.7% compared with the same period last year.
Import and export performance:
Export: Export turnover of the foreign investment sector continued to decrease due to the impact of the Covid-19 pandemic. Export (including crude oil) reached 113.3 billion USD, equaling 95.5% over the same period last year, accounting for 65.1% of export turnover. Export excluding crude oil was 112.2 billion USD, equaling 95.7% over the same period last year, accounting for 64.4% of the country's export turnover in the eight months of 2020.
Imports: Imports of foreign investment sector reached nearly 90.8 billion, or 94.7% over the same period last year and accounting for 55.6% of the country's import turnover.
Despite a decrease compared to the same period last year, in the first 8 months of 2020, the FDI sector still saw a trade surplus of approximately 22.6 billion USD including crude oil and a trade surplus of 21.4 billion USD excluding crude oil, offsetting the trade deficit of 11.6 billion USD of the domestic sector, helping the country to gain a trade surplus of 10.9 billion USD.
1.2. Investment registration
As of August 20th, 2020, total newly registered capital, adjusted capital and capital contribution or share purchase by foreign investors reached 19.54 billion USD, or 86.3% compared to the same period last year. Although newly registered and adjusted capital increased over the same period, foreign investors’ capital in the form of capital contribution or share purchase continued to decrease, reducing the total investment capital attracted in the first 8 months of the year.
Foreign investment in the first 8 months of 2016-2020
Of which:
Newly registered capital: There were 1,797 new projects granted with investment certificates (a year-on-year decrease of 25.3%). Total registered capital reached 9, 73 billion USD (a year-on-year increase of 6.6%). The increase in investment capital is mainly thanks to the project of Bac Lieu Liquefied Natural Gas Power Plant (LNG) being granted with a new investment certificate with a total investment capital of 4 billion USD (accounting for 41.1% of total new registered capital).
Adjusted capital: There were 718 times of projects registered for adjustment of investment capital (a year-on-year decrease of 20.9%). Total additional registered capital reached 4.87 billion USD (up by 22.2% compared with the same period last year). Adjusted capital in 8 months increased thanks to the capital expansion of Vietnam Southern Petrochemical Complex Project in Ba Ria - Vung Tau (Thailand) by 1,386 billion USD and that of the project of West Lake Urban Center West (South Korea) by 774 million USD.
Capital contribution and share purchase: There were 4,804 times of capital contribution and share purchase by foreign investors (a year-on-year fall of 8.2%). The total value of capital contribution was worth 4.93 billion USD (equal to 51.8% compared to same period last year). The proportion of capital contribution and share purchase in the total investment capital also decreased significantly compared to the same period last year (from around 42% in the eight months of 2019 to 25.2% in the eight months of 2020).
(Detailed tables in Appendix I attached to the report).
By sector:
Foreign investors have invested in 18 sectors, of which the processing and manufacturing led with total investment capital of over 9.3 billion USD, accounting for 47.7% of the total registered investment capital. Electricity production and distribution ranked second with investment capital of over 4 billion USD, accounting for 20.6% of total registered investment capital. It is followed by the real estate business, wholesale and retail with the total registered capital of nearly 2.87 billion USD and 1.21 billion USD. The rest are other sectors.
By counterpart:
There are 106 countries and territories investing in Vietnam. Singapore led the list with total investment capital of 6.54 billion USD, accounting for 33.5% of total investment capital in Vietnam; South Korea ranked second with investment of 2.97 billion USD, accounting for 15.2% of total investment capital. China ranked third with registered investment capital of 1.75 billion USD, accounting for approximately 9% of total investment capital. Next were Japan, Thailand, Taiwan, etc.
In terms of the number of new projects, Korea ranked first (463 projects); China ranked second (256 projects); Japan ranked third (196 projects); and Hong Kong ranked fourth (164 projects).
By location:
The FDI has invested in 59 provinces and cities nationwide. Bac Lieu continued to lead the list with a large project worth 4 billion USD, accounting for 20.5% of total registered investment capital. Hanoi ranked second with total registered capital of 2.86 billion USD, accounting for nearly 14.6% of total investment capital (of which investment was mainly in the form of expanding existing projects and capital contribution and share purchase, accounting for 42.3% and 41.7% of the city’s total registered investment capital, respectively). Ho Chi Minh City ranked third with 2.62 billion USD, accounting for 13.4% of total investment capital (in which investment in the form of capital contribution andshare purchase accounted for a large proportion or 75.7% of the city’s total investment capital). Next are Ba Ria - Vung Tau, Binh Duong, Hai Phong, and so on.
Regarding the number of new projects, Ho Chi Minh City led the list (669 projects); Hanoi ranked second (377 projects); Bac Ninh ranked third (110 projects).
(Detailed tables are in Appendix II attached to the report).
Several major projects in the first 8 months of 2020:
(1) Liquefied Natural Gas (LNG) Plant Project under the operation of Bac Lieu LNG Thermal Power Centre (Singapore) having total registered investment capital of 4 billion USD with the goal of producing electricity from liquefied natural gas (granted with a certificate of competency on January 16, 2020).
(2) The South Vietnam Petrochemical Complex Project (Thailand) in Ba Ria - Vung Tau with an increase of adjusted investment capital by 1,386 billion USD (adjusted Investment Certificate dated April 18, 2020).
(3) Radian Jinyu Tire Manufacturing Plant Project (Vietnam) with total investment of 300 million USD aimed at producing full steel TBR tires invested by Chinese investors in Tay Ninh (granted with a certificate of investment on January 1, 2020).
(4) Victory Project - A factory manufacturing high-tech electronic products in Dong Van, Ha Nam (Taiwan), worth 273 million USD with the goal of manufacturing and assembling electronic computer and computer auxiliary equipment, production of civil electronic audio and visual equipment (granted with a certificate of competency on April 1, 2020)
(5) Office Building project at 29 Lieu Giai (Singapore) with expanded investment capital by 246 million USD (adjusted Investment Certificate issued on March 31, 2020).
2. Evaluation of the FDI performance in August and the first 8 months of 2020
- The recurrence of the Covid-19 epidemic in Vietnam in the past time has had certain impacts on foreign investment enterprises. Production and trade was sluggish. More businesses fell into difficult situation. The realized capital of foreign investment projects continued to decrease in the first 8 months of the year, equaling 94.9% over the same period last year.
- Many foreign investors stayed interested and wished to invest in Vietnam. However, the travel of investors as well as new decisions of making new investment and expansion of existing foreign investment projects was still affected by the Covid-19 epidemic. The number of new projects, capital adjustment and the number of foreign investors' capital contribution and share purchase also decreased compared to the same period last year. Although new investment and capital adjustment rose (6.6% and 22.2% respectively) in 8 months, most of the rise was thanks to large projects, which have been submitted and negotiated for a long time before. The growth rate is also decreasing gradually. The above results, though lower than the same period last year, remain better than those of many other countries in the context of global slumping investment performance as a result of the Covid-19 pandemic, showing Vietnam’s attractiveness in the eyes of international investors.
- The trade balance in goods in the first 8 months of 2020 in Vietnam continued to see a surplus of 10.9 billion USD, of which export surplus brought by the foreign invested sector (including crude oil) worth 22.6 billion USD; trade deficit in the domestic economic sector worth 11.6 billion USD in spite of extremely heavy impact of the disease to the economies of many countries.
3. Accumulated foreign investment as of August 20th, 2020
Accumulated as of August 20th, 2020, the whole country had 32,539 valid projects with total registered capital of nearly 381.2 billion USD. The accumulated realized capital of FDI projects was estimated at 223.1 billion USD, equaling 58.5% of the total valid registered capital.
- By sector: foreign investors have invested in 19/21 sectors in the national economic classification system, of which the processing and manufacturing sector accounted for the highest proportion with 222.9 billion USD, accounting for 58.5% of total investment capital, followed by real estate business with 59.7 billion USD (accounting for 15.7% of total investment capital); electricity production and distribution with 27.6 billion (accounting for 7.2% of total investment).
- By counterpart: 137 countries and territories had valid investment projects in Vietnam. South Korea ranked first with registered capital of nearly 70.2 billion USD (accounting for 18.4% of total investment). Japan ranked second with nearly 60.3 billion USD (capturing 15.8% of total investment capital), followed by Singapore, Taiwan, and Hong Kong.
- By location: FDI has been present in all 63 provinces and cities nationwide, of which Ho Chi Minh City is still the leading province in attracting foreign investment with 47.8 billion (accounting for 12.6% total investment); followed by Hanoi with 39 billion USD (accounting for 10.2% of total investment capital); Binh Duong with over 35 billion USD (accounting for 9.2% of total investment capital).
(Detailed tables in Appendix III to the report)
II. FDI OUTFLOWS
In the first 8 months of 2020, Vietnam’s total newly registered investment and expanded investment outflows were 330.2 million USD, up by 15.8% over the same period last year. Of which, 86 projects were newly registered with total investment of 218.5 million USD (a year-on-year increase of 21.3%) and 25 times of investment adjustment with capital gain of 111.8 million USD (a rise of 13.3% compared to the same period last year).
In August 2020 particularly, 6 projects were granted with new investment registration certificates and 8 times of projects were expanded with the total new and additional investment capital of 77.3 million, equaling 47.8% compared to in the same period last year and up by more than 2.5 times compared to July 2020.
Vietnamese investors have invested in 13 sectors abroad. In which, processing and manufacturing led the list with 10 new projects and 6 times of capital adjustment obtaining registered capital of 225.7 million USD, accounting for 68.4% of total investment capital. Accommodation and catering services ranked second with 39.6 million USD, accounting for nearly 12%; followed by wholesale and retail, information and communication.
There are 24 countries and territories receiving investment from Vietnam in the first 8 months of 2020. Leading is Germany with 4 new investment projects worth 92.6 million USD, accounting for 28% of the total investment. Laos ranked second with 86.7 million USD, accounting for 26.3%. Followed by Myanmar, United States, and Singapore.
(Detailed tables in Appendix IV to the report).
Ministry of Planning and Investment